The crypto market is once again painted in red. Over the past 12 hours, the crypto market cap has fallen from around $2.15 trillion to a four-month low of $1.92 trillion according to CoinGecko. \
And Bitcoin (BTC)’s price is no less than a suspense thriller movie these days.
On Jan. 20, it plunged from $43,500 to $38,500, with a slump of nearly 11.5% within only 12 hours.
It reached the lowest point since August 2 of last year. Bitcoin is finally making some big moves and we can expect the next few days to be highly volatile.
The cryptocurrency market sentiment which has been displaying extreme fear intensified after this sharp decline. Crypto Fear & Greed Index has changed from 24 yesterday to 19 now (the lower the index, the more fear).
What comes with the downtrend moves and fear sentiments are a series of bad news:
On January 19th, U.S. President Joe Biden explained that the country’s central bank was dealing with a large share of the inflationary pressures.
To combat ongoing inflation, The U.S. is decreasing the dollar’s monetary supply through quantitative tightening. JPMorgan CEO Jamie Dimon recently stated that the Federal Reserve might raise interest rates up to seven times. At the same time, the crypto market is also under pressure.
Outumuro pointed out in his report that a similar trend was noticed in Bitcoin’s price movement in 2018 when inflationary pressures and monetary supply decreased.
This correlation between the money supply change and Bitcoin’s price has been increasing since then. If the monetary supply decreases going forward, Bitcoin’s future outlook could turn increasingly bearish. This is because investors would once more shift focus from risky assets like crypto and equities.
Continuous Crackdown on Regulatory Policies
On January 20th, Russia proposed a full ban on crypto, this includes mining, trading and use of cryptocurrencies. Cryptocurrency mining in Russia has a major footing as the country is the third largest when it comes to mining of cryptocurrencies.
Volume of cryptocurrency mining still remains the highest in the US, followed by Kazakhstan, however, the latter has been in talks about cutting off electricity provisions.
This news about Russia’s ban might potentially drive crypto enthusiasts across the globe up the wall. Minimising crypto issuance along with over-the-counter trading desks, crypto exchanges and peer-to-peer exchanges could send a ripple across the whole crypto space.
Along with that, a leading EU regulator, Erik Thedéen, has pushed for banning Proof-of-Work mining amid concerns over its exorbitant energy consumption.
As of now, this would entail banning mining for both of the two largest cryptocurrencies, Bitcoin and Ethereum.
How to Profit in the Bear Run?
It seems that the next few days will still be challenging and wild for Bitcoin. The slump sent people into panic. But mastering the right trading method can reap huge benefits.
If you want to profit from a bear market, you may need to know 100 times leveraged futures trading cryptocurrency.
With 100x leverage futures trading, you can either buy up (go long) or sell down (go short), which means that you can take profits whether the market rises or falls. What’s more, 100 times leverage can magnify your profits by 100 times.
How does 100x Leverage Work?
Traders can open a position with only a 1% margin required with this tool. For example, if we used 1 BTC to open a short contract at the price of $43,500 on January 20th and close it 12 hours later when Bitcoin was trading at $38,500, our profit will be ($43,500 – $38,500) * 100 BTC / $38,500 = 13 BTC, making the ROI of 1300%.
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